When most CEOs see their company name trending alongside the word "boycott," they panic. Their PR teams go into a frantic 24-hour war room mode. Stock prices usually dip. It's a nightmare scenario for any brand trying to maintain a clean, lifestyle-friendly image. But the situation with SodaStream was... different. Looking back at the tenure of former CEO Daniel Birnbaum, there is a legitimate argument that SodaStream CEO boycotts helped company momentum in ways the activists never intended.
It sounds counterintuitive. It sounds like corporate spin. But if you dig into the numbers and the brand recognition shifts between 2014 and 2018, the "boycott" effect acted as a massive, free megaphone.
The Global Stage and the Scarlett Johansson Factor
Most of this started because of a factory in Ma'ale Adumim. This was a manufacturing plant located in the West Bank. To the BDS (Boycott, Divestment, Sanctions) movement, this was a non-starter. They viewed it as a violation of international law. The pressure reached a fever pitch in 2014 when actress Scarlett Johansson signed on as a global brand ambassador.
She had to choose between her role with Oxfam, an international charity, and her contract with SodaStream. She chose the fizzy water.
The resulting explosion of media coverage was worth tens of millions in equivalent advertising spend. Suddenly, everyone knew what a SodaStream was. You couldn't turn on the news without seeing the sleek carbonation machines. People who had never considered making soda at home were suddenly aware of the brand. While the ethics were debated in university halls and on Twitter, the average consumer in the American Midwest or rural France was just learning that they could save money and reduce plastic waste with this specific gadget.
Birnbaum didn't shy away. He leaned in. He went on news circuits. He argued that the factory was actually an "island of peace" where Palestinians and Israelis worked side-by-side with equal pay and benefits. Whether you agree with that assessment or see it as a convenient narrative, the result was a CEO who became the face of a brand under fire, and a brand that became a household name overnight.
How the controversy fueled brand identity
Conflict creates clarity. Before the intense boycotts, SodaStream was struggling a bit to find its voice in the US market. Was it a soda alternative? A kitchen appliance? A green tech company?
💡 You might also like: Missouri Paycheck Tax Calculator: What Most People Get Wrong
The boycotts forced the company to double down on its "disruptor" identity. Birnbaum realized that if the company was already being attacked, they might as well be aggressive. This led to their infamous marketing wars with Coke and Pepsi. They started airing commercials that showed thousands of plastic bottles exploding, directly attacking the environmental records of the "Big Soda" giants.
The boycott focused on the factory, but the company shifted the conversation toward environmentalism. It was a classic pivot. By the time SodaStream eventually moved its factory from the West Bank to the Negev desert in 2015, the "SodaStream CEO boycotts helped company" narrative had already solidified. The move was framed not as a surrender to activists, but as a massive expansion. They built a "Global Victory" plant.
The irony? The boycott made the brand feel "edgy" and "principled" to different segments of the population simultaneously. To those who supported the company's stance, buying a machine became a political statement of support. To those who didn't care about the politics, the constant news coverage just kept the product top-of-mind during holiday shopping seasons.
The PepsiCo acquisition: The ultimate proof of resilience
If the boycotts had truly crippled the brand, PepsiCo wouldn't have touched it with a ten-foot pole. Major corporations are notoriously risk-averse. They hate controversy. They hate being targeted by protesters.
Yet, in 2018, PepsiCo bought SodaStream for $3.2 billion.
That valuation doesn't happen to a company that's being successfully boycotted. It happens to a company that has managed to maintain a loyal customer base and a high growth trajectory despite—or perhaps because of—the noise. Birnbaum stayed on as CEO for a period after the acquisition, further cementing the idea that his leadership style, which many called "defiant," had paid off.
📖 Related: Why Amazon Stock is Down Today: What Most People Get Wrong
The data suggests that the boycott failed to hit the bottom line in a meaningful, long-term way. Instead, it provided a platform. In the world of modern retail, the greatest sin isn't being controversial; it's being invisible. SodaStream was never invisible.
Why the "Boycott Effect" backfired for activists
When you look at the economics of the "boycott" vs. the "buycott," the numbers are often skewed. It is much easier to get 10,000 people to sign an online petition than it is to get them to stop buying a product they already use and like. Meanwhile, the counter-movement—people who buy the product specifically because it is being boycotted—is often more motivated to actually spend money.
- Awareness spikes: Every time a protest happened outside a store in London or New York, the local news covered it. Free PR.
- Retailer loyalty: Most major retailers like Bed Bath & Beyond (at the time) and Target didn't drop the product. They saw the sales data. The demand was there.
- Product Pivot: Birnbaum used the pressure to transition the brand away from "soda" (which was a declining market) and toward "sparkling water" (which was exploding).
The controversy acted as a smokescreen while the company did the hard work of re-engineering their marketing. They stopped talking about syrup flavors and started talking about "Hydration." They went from being a niche product for people who like gadgets to a "must-have" for the health-conscious, eco-friendly millennial.
Lessons in crisis management and brand defiance
There is a specific kind of "expert" who will tell you that the best move in a crisis is to apologize and disappear. Birnbaum did the opposite. He was loud. He was argumentative. He invited cameras into his factory.
He understood that his primary audience wasn't the activists; it was the consumer who wanted a carbonated drink without the plastic guilt. By focusing on the 500 Palestinian workers who he claimed would lose their jobs if the factory closed (and many did eventually lose their permits when the move happened), he complicated the narrative. He turned a black-and-white political issue into a messy, human one.
This complexity is what saved the brand. When a situation is messy, the general public tends to tune out the politics and focus on the product.
👉 See also: Stock Market Today Hours: Why Timing Your Trade Is Harder Than You Think
Actionable Insights for Navigating Brand Pressure
If you're looking at the SodaStream case study as a business owner or a marketing professional, there are real-world takeaways that don't involve just "being lucky."
Identify your core customer vs. your loudest critic
SodaStream knew their core buyer wasn't the person protesting on a college campus. They focused their messaging on the people who actually bought CO2 canisters every month. Don't let a loud minority dictate your entire corporate strategy if your sales data says otherwise.
Control the pivot
The move from the West Bank to the Negev was a logistical necessity, but they marketed it as a "global expansion." If you have to make a change due to pressure, frame that change as a proactive step toward a larger vision, not a reactive retreat.
The "Value Addition" Rule
The reason the boycott didn't work is that the product actually solved a problem (plastic waste and the cost of sparkling water). If your product is mediocre, a boycott will kill it. If your product is essential to the user's lifestyle, they will find a way to justify the purchase regardless of the headlines.
Humanize the impact
Birnbaum’s focus on his employees was a masterclass in shifting the focus. If your organization is under fire, move the conversation away from abstract policies and toward the actual people who make the business run. It makes it much harder for critics to maintain a purely aggressive stance.
Ultimately, the SodaStream story proves that a boycott doesn't have to be the end. Sometimes, it’s just a very loud, very stressful invitation to the big leagues.
Next Steps for Implementation:
Check your current brand sentiment. Are you being ignored? If so, consider a "challenger" marketing campaign that takes a firm stance on an industry issue. If you are currently facing backlash, audit your customer retention. If your actual users aren't leaving, the noise might actually be an opportunity to clarify your brand's mission to a wider audience.